IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v57y2021i11p3120-3138.html
   My bibliography  Save this article

Can Green Investment Win the Favor of Investors in China? Evidence from the Return Performance of Green Investment Stocks

Author

Listed:
  • Xianfang Su

Abstract

Green investment is a highly praised form of investment behavior in today’s China. The ecological value of green investment has reached a consensus, but its financial performance remains an open question. Based on a unique dataset of 77 green investment stocks covering the period from July 2012 to December 2017, this paper investigates the returns performance of green investments employing multifactor models and propensity score matching techniques. We find that green investment stocks underperform conventional stocks and offer less protection against extreme downside risk, which indicates that investors need to pay what amounts to a premium or supplemental cost for going green. Our empirical results point to some important implications for policymakers and investors.

Suggested Citation

  • Xianfang Su, 2021. "Can Green Investment Win the Favor of Investors in China? Evidence from the Return Performance of Green Investment Stocks," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(11), pages 3120-3138, September.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:11:p:3120-3138
    DOI: 10.1080/1540496X.2019.1710129
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2019.1710129
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2019.1710129?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hooi Hooi Lean & Fabio Pizzutilo & Kimberly Gleason, 2023. "Portfolio performance implications of investment in renewable energy equities: Green versus gray," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2990-3005, November.
    2. Youtang Zhang & Hagos Mesfin Berhe, 2022. "The Impact of Green Investment and Green Marketing on Business Performance: The Mediation Role of Corporate Social Responsibility in Ethiopia’s Chinese Textile Companies," Sustainability, MDPI, vol. 14(7), pages 1-24, March.
    3. Xiaohui Wu & Yumin Li & Chong Feng, 2023. "Green innovation peer effects in common institutional ownership networks," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 641-660, March.
    4. Yao Xiao & Weimin Yan & Benhong Peng, 2023. "Explore the Complex Interaction between Green Investment and Green Ecology: Evaluation from Spatial Econometric Models and China’s Provincial Panel Data," Sustainability, MDPI, vol. 15(12), pages 1-18, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:57:y:2021:i:11:p:3120-3138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.